Noreco to sell Norwegian petroleum activities

Norwegian Energy Company ASA (‘Noreco’) has announced that its fully owned subsidiary Noreco Norway AS (Noreco Norway) has entered into a sale and purchase agreement (SPA) with Djerv Energi AS (Djerv) for the sale of its exploration licence interests, organisation and management systems. The owners of Djerv will be a US based investment fund (70%) and Noreco (30%).

The owners of Djerv will subscribe on equal terms prorata in a primary offering, to ensure that the company is funded for known commitments.

Additionally, Noreco Norway has entered into an SPA to transfer its 4.36% participating interest in the Enoch licence to CapeOmega AS.

Subject to completions, the proposed transactions will lead to a subsequent ceasing of all of Noreco Norway’s petroleum activities. Added to the proceeds from the Oselvar sale this is expected to result in an estimated recovery of approximately 90% of the initial principal amount under the NOR06 bond issue.

The proposed transactions are conditional upon approvals by the Norwegian ministries; Ministry of Petroleum and Energy and Ministry of Finance. Additionally, the transaction entered into with Djerv is conditional on approval from NOR06 bondholders.

Read the article online at: https://www.oilfieldtechnology.com/drilling-and-production/21122015/noreco-to-sell-norwegian-petroleum-activities/